Borgwarner(Bwa) Financials: Payables Turnover Compared To Industry Average, Plus Other Key Ratios
Growth Trend (Last 5 Years)
Growth - payables turnover
This chart shows the historical trend of payables turnover for BWA compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Payables Turnover
Definition: Payables turnover shows how fast the company pays its suppliers for goods or services bought on credit. A high turnover means the company pays suppliers quickly, which may reflect strong cash flow or favorable terms. A very low turnover might mean the company is stretching payments to preserve cash — or possibly experiencing financial strain.
Interpretation:
• In '2021', BWA's payables turnover was 3.81, indicating how promptly the company pays its suppliers. Industry average for Auto Parts:O.E.M. in '2021' stood at 4.02.
• In '2022', BWA's payables turnover was 4.17, indicating how promptly the company pays its suppliers. The increase since '2021' reflects strengthening financial performance. Industry average for Auto Parts:O.E.M. in '2022' stood at 5.03. Industry average increased by 1.01 compared to previous year.
• In '2023', BWA's payables turnover was 4.49, indicating how promptly the company pays its suppliers. The increase since '2022' reflects strengthening financial performance. Industry average for Auto Parts:O.E.M. in '2023' stood at 5.09. Industry average increased by 0.06 compared to previous year.
• In '2024', BWA's payables turnover was 4.52, indicating how promptly the company pays its suppliers. The increase since '2023' reflects strengthening financial performance. Industry average for Auto Parts:O.E.M. in '2024' stood at 5.35. Industry average increased by 0.26 compared to previous year.
Overall, BWA's payables turnover has steadily improved over the past 4 years.
Formula: Payables Turnover = Cost of Goods Sold / Average Accounts Payable
Good Range: Ranges 5-15 depending on industry.